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S E P T E M B E R 2 0 1 0 I 99 CHAPTER FOUR implementation For the vision, goals and policies described in the body of the San Pablo Avenue Specific Plan to succeed, public and private partners from both El Cerrito and Richmond must work together towards implementation. This chapter outlines strategies and requirements that comprise “how to” steps for directing future investment along San Pablo Avenue. The governance mechanisms, phasing strategy, and funding tools described in this Implementation chapter present a thorough approach for creating a vital mixed-use corridor long the Avenue. Specifically, the chapter includes the following sections to direct plan implementation: General Plan consistency, Plan administration, phasing strategy and financing strategy. IN THIS CHAPTER... General Plan Consistency Plan Administration Phasing Strategy Financing Strategy ---PAGE BREAK--- v o l u m e I I c h a p t e r f o u r 100 I S A N P A B L O A V E N U E S P E C I F I C P L A N D R A F T GENERAL PLAN CONSISTENCY Per California State Law, specific plans must be internally consistent with jurisdictions’ general plans. The San Pablo Avenue Specific Plan spans two jurisdictions – the City of El Cerrito and the City of Richmond – and supports both cities’ general plans in a way that provides additional guidance for development along San Pablo Avenue. New development projects must follow the policies, designations, standards and guidelines set forth in this Specific Plan, which take precedence over the more general policies and standards applied to other areas of both cities. These requirements will also apply to existing developments in instances where owners or occupants intend to alter an existing structure or change an existing use. As described throughout the body of the San Pablo Avenue Specific Plan, this document is consistent with all elements of both cities’ general plans and specifically fulfills the jurisdictions’ unique and common goals. The City of El Cerrito’s 1998 General Plan identifies San Pablo Avenue as the city’s largest commercial and mixed-use corridor that features intensified nodes of activity around transit hubs and supporting uses between the nodes. The 2009 Richmond General Plan calls for San Pablo Avenue to become an attractive gateway to the city from the south, with iconic buildings, streetscape and entry features. Both plans identify the need to elevate the look of the Avenue with enhancements to the pedestrian environments, open space network, and transit systems that serve the area. El Cerrito will need to amend its General Plan to accommodate the intensification of allowed development along the Avenue. Richmond will not need to amend its general plan goals, policies, or land use designations to implement this Specific Plan. A comprehensive list of each city’s general plan goals and policies that support the development requirements contained in this Specific Plan is included in Volume III Technical Appendices. ---PAGE BREAK--- i m p l e m e n t a t i o n S E P T E M B E R 2 0 1 0 I 95 PLAN ADMINISTRATION This Specific Plan must be adopted by resolution by each jurisdiction’s City Council. Following adoption of this Specific Plan and any necessary amendments to existing regulatory documents, planning, redevelopment and community development staff from both cities will administer the plan. Once the Specific Plan is adopted, the Cities should engage in discussion over which City should take the lead on the review of developments on parcels with spilt land use and zoning. As public or private entities propose new projects on properties within the Specific Plan area, staff will review each project for compliance with the policies, designations and standards contained in this document. Staff may also use the product prototypes and design guidelines as models of desirable development styles, offering this content as direction for applicants that may not have their own approach in mind. Although the product prototypes and design guidelines can help steer projects, they are not intended to be prescriptive. New projects will be evaluated by staff based on site-specific conditions and the surrounding context. The entitlement process will be based on discretionary review. PHASING STRATEGY Though many of the improvements identified in the preceding chapters will fall to the private sector to champion and implement, there are a number of public improvements identified as well. All of the improvements articulate a component of the long-term vision for San Pablo Avenue. Because market factors and implementation logistics make it impossible to implement all of the proposed improvements at once, early resource allocations must be directed toward actions that will make the most tangible difference and spur private investment. This section describes the recommended sequencing of additional public investment and desired timing for private projects, which have been prioritized due to their relevance in evolving San Pablo Avenue in to a more vital mixed-use corridor. Despite this expected sequence, this section is not intended to be prescriptive; rather, the proposed improvements are conceptual. Should other opportunities to pursue projects arise out of this anticipated order – due to private investment, changing market conditions or other factors – the timing of improvements can and should be reassessed. Initially, it is anticipated that investment will continue in the Plaza area. Public and private investment can be used to leverage the successful new projects in this area, and development ---PAGE BREAK--- v o l u m e I I c h a p t e r f o u r 96 I S A N P A B L O A V E N U E S P E C I F I C P L A N D R A F T energy should be directed to this section of the corridor to help it continue to expand and thrive. Simultaneous with Plaza development, the El Cerrito City Hall will help form a new civic core, and complementary public facilities and housing development will likely follow. Del Norte BART is also poised to absorb additional higher-density housing development on available parcels. However, long-term, full buildout of the Del Norte BART Station area may require additional structured parking and street realignments. Finally, the Macdonald Gateway area should redevelop as land becomes available, though currently short- term opportunities appear limited. Over time, improvements and new development in the four activity nodes will stimulate additional investment between the areas and catalyze the revitalization of the Avenue. The implementation matrices on the following pages include the anticipated public and private- led actions necessary to implement the Specific Plan. These include capital, infrastructure, utilities and facility upgrades necessary to support expected development along San Pablo Avenue as it grows in accordance with this Specific Plan. It also includes the anticipated timeframe for making the improvements and the lead City and/ or partners involved in implementation. Though comprehensive, these lists do not necessarily include every improvement necessary along San Pablo Avenue. They should be used as a flexible and evolving guide to direct the timing of major improvements, many of which are tied to market demand and triggered by private investment and/or availability of public financing and funding. The improvements described in this phasing plan will be funded by various means, including private investment, capital improvement projects, Redevelopment Agency assistance, grants, public private partnerships, permitting fees and other funding sources. These mechanisms are described in greater detail in the following section, Financing Strategy. ---PAGE BREAK--- i m p l e m e n t a t i o n S E P T E M B E R 2 0 1 0 I 97 El Cerrito Plaza BART Station SAN PABLO AVE SAN PABLO AVE CARLSON BLVD POTRERO AVE POTRERO AVE CENTRAL AVE MOESER LN CUTTING BLVD ASHBURY AVE FAIRMOUNT AVE BART - Richmond Line Ohlone Greenway MACDONALD AVE A L B A N Y E L C E R R I T O R I C H M O N D San Francisco Bay I-580 I-80 Macdonald Gateway Del Norte BART Station Mid-town/ Civic Center Plaza Figure 4.1: Phasing Strategy Existing Parks Phase 1 Phase 2 Ohlone Greenway Future Richmond Greenway BART Alignment City Limits Waterbodies Freeway ! BART Station 2000 0 FEET 1000 N ---PAGE BREAK--- v o l u m e I I c h a p t e r f o u r 98 I S A N P A B L O A V E N U E S P E C I F I C P L A N D R A F T Public-Led Actions Implementation Matrix Timeframe Lead/Partners Right-through lane northbound at Hill Street with possible extension of through-lane to Cutting Boulevard 0-5 years City of El Cerrito, Caltrans Reconfigured San Pablo Avenue intersection with Hill Street/Eastshore Boulevard, including in-bound only lane to shopping center and signal timing. 0-5 years City of El Cerrito, Caltrans, land owners and businesses Two-way Cutting Boulevard between San Pablo Avenue and BART tracks, including restriping, signal timing, and approach geometry from Cutting Boulevard west of San Pablo Avenue 0-5 years City of El Cerrito, Caltrans, BART, transit/bus line opera tors Right-through lane northbound at Cutting Boulevard with extension of through-lane to Knott Avenue 0-5 years City of El Cerrito, Caltrans New or improved crosswalks along San Pablo Avenue at Cutting Boulevard, Hill Street/Eastshore Boulevard, Moeser Lane, Fairmount Avenue 0-5 years City of El Cerrito, Caltrans New park and trail connection between Ohlone Greenway and Richmond Greenway 0-5 years City of Richmond Assessment of new parks and open spaces identified in the plan 0-5 years City of El Cerrito, City of Richmond Analysis of potential for local traffic improvement and parkland fee programs 0-5 years City of El Cerrito Redevelopment of Tradeway site 3-5 years City of El Cerrito Redevelop ment Agency Redevelopment of Mayfair block 3-5 years City of El Cerrito Redevelop ment Agency Implementation of adopted Pedestrian and Bicycle Circulation Plan 0-10 years City of El Cerrito, Private Development Implementation of right-turn channelization recommended in the Traffic Safety Audit for southbound San Pablo Avenue between Knott Avenue and Hill Street, includes striping and potential widening. 0-10 years City of El Cerrito, Private Development Analysis of the programs, policies, practices and capital improvements recommended in the Pedestrian Safety Assessment Report to improve safety and enhance walkability and accessibility for all pedestrians in the Specific Plan area. 0-10 years City of El Cerrito, Private Development Implementation of Ohlone Greenway Master Plan improvements 0-10 years City of El Cerrito Mid-block signalized crosswalk system across San Pablo Avenue at Del Norte BART 5-10 years City of El Cerrito, Caltrans, Private Development ---PAGE BREAK--- i m p l e m e n t a t i o n S E P T E M B E R 2 0 1 0 I 99 Private-Led Actions Implementation Matrix* Timeframe Lead/Partners Pedestrian promenade through new development linking San Pablo Avenue directly with Del Norte BART station Concurrent with new development Private Development, City of El Cerrito, BART Improvements to intermodal transit plaza at Del Norte BART Concurrent with new development Private Development, City of El Cerrito, BART Infrastructure upgrades, including water, storm drain and sewer system improvements as may be needed Concurrent with new development Private Development, City of El Cerrito or City of Richmond, as appropriate Implementation of the Contra Costa Clean Water Program, Stormwater Quality Requirements (California Regional Water Quality Control Board C.3 Requirements) Concurrent with new development Private Development, City of El Cerrito or City of Richmond, as appropriate Mixed-use TOD development at Del Norte BART station Concurrent with new development Private Development, City of El Cerrito, BART Mixed-use TOD development at Plaza BART station Concurrent with new development Private Development, City of El Cerrito, BART Mitigation of seismically hazardous buildings along San Pablo Avenue Consistent with City Municipal Code requirements Private Development, City of El Cerrito Mixed-use or residential development in Mid-town/Civic Center Area Concurrent with new development Private Development, City of El Cerrito Outdoor dining in public right-of-way Possible with existing restaurants and concurrent with new restaurants Private Business and Development, City of El Cerrito Business development and improvement on San Pablo Avenue As opportunities arise Private Development, City of El Cerrito Streetscape improvements to Central Avenue east of San Pablo Avenue 5-20 years (Concurrent with new development at Plaza BART station) Private Development, City of El Cerrito Reconfigured intermodal transit center at Del Norte BART, including restriping or bus berth reconfiguration 5-20 years (Concurrent with new development on BART parking lot) Private Development, City of El Cerrito, Caltrans, BART, transit/bus line operators * All public and private actions may be subject to additional analysis and funding prior to implementation. ---PAGE BREAK--- v o l u m e I I c h a p t e r f o u r 100 I S A N P A B L O A V E N U E S P E C I F I C P L A N D R A F T FINANCING STRATEGY A number of potential capital financing strategies are available to support private sector investment on San Pablo Avenue, along with additional streetscape improvements and utility improvements in the Specific Plan Area. The following section describes these various funding alternatives, including local, regional, State and Federal funding sources, and fee and exaction- based funding mechanisms. This section does not specifically determine which resources will be used to finance the proposed improvements, but rather summarizes a range of options available to the Cities of Richmond and El Cerrito. This more general approach is necessary, given the long-term nature of the Specific Plan, the broad range of recommended improvements, and the uncertain and time-sensitive nature of many revenue sources that contribute to these improvements. The Cities of El Cerrito and Richmond each maintain a Capital Improvement Plan (CIP) that prioritizes and allocates funds to various projects. El Cerrito maintains a 10-year CIP, while Richmond plans for a 5-year period. Both Cities update their plans annually to track project progress, prioritization, revenues, and expenditures. In addition to attaching the revenue sources to upcoming projects, the CIP also identifies future objectives that remain unfunded. Eventually, the Cities of El Cerrito and Richmond expect to incorporate the proposed Specific Plan improvements into their respective CIPs. In order to receive state and federal funds for these improvements, the Cities would also need to work with the Metropolitan Transportation Commission (MTC) to add the proposed projects to the State Transportation Improvement Program (STIP) and a Federal Transportation Improvement Program (FTIP) that are not already so listed. The STIP and FTIPs are essentially larger-scale capital improvement plans that identify particular projects for funding, based on nominations from local jurisdictions and coordinated planning by regional transportation planning agencies such as MTC. ---PAGE BREAK--- i m p l e m e n t a t i o n S E P T E M B E R 2 0 1 0 I 101 Local Funding Sources General Fund The General Fund is a discretionary revenue source, generally used to pay for basic municipal services such as police, fire, and public works. Secured by General Fund revenues, the Cities of Richmond and El Cerrito may issue General Obligation Bonds to pay for infrastructure improvements, following a two-thirds approval among local voters. Generally, demands on General Fund revenues leave few dollars available toward debt service for new bond issuances. Should the City decide against the use of the General Fund to provide substantial support for capital improvements in the San Pablo Avenue Specific Plan area, the City may still direct a one-time allotment from the General Fund for planning and engineering services that would help to establish a Special District as described below. Redevelopment Tax Increment Financing Redevelopment agencies use Tax Increment Financing (TIF) to fund improvements in project areas in order to spur private investment and jumpstart revitalization efforts. The portion of the plan area within El Cerrito is in the City’s redevelopment project area and is, therefore, a target for these TIF investments. In fact, the El Cerrito Redevelopment Agency (RDA) currently supports several initiatives along the San Pablo Avenue corridor. These include streetscape and lighting, facilitating private investment in the area, and ongoing support of affordable housing through the RDA’s Low- and Moderate-Income Housing Fund. The City expects to continue these programmatic efforts and capital contributions to revitalize the corridor. State Gas Tax Subvention California’s 18 cent per gallon fuel excise tax is a major source of funding for transportation projects. Thirty-five percent of revenues collected through this source are allocated to cities and counties, known as the local subvention. Funds may be spent on transportation maintenance, improvements and management, including funding streetscape improvements. Gas tax capital improvement funds are earmarked through each City’s CIP. Local Sales Tax Initiatives Municipal and countywide sales tax increases are often used to raise capital funds for infrastructure improvements. For example, Measure C, a Contra Costa County transportation sales tax initiative, was originally approved by voters in 1988 and extended for an additional 25 years in 2006. Most funds from this source are dispersed on a formula basis to local jurisdictions and are available for a number of purposes, including ---PAGE BREAK--- v o l u m e I I c h a p t e r f o u r 102 I S A N P A B L O A V E N U E S P E C I F I C P L A N D R A F T local street maintenance, and pedestrian and bicycle improvements. A portion of funds collected through the Measure C sales tax are also distributed through a competitive grant process, with local jurisdictions competing within their County sub-region for funds. These Contra Costa Transportation for Livable Communities grants (CC-TLC) offer funds to support transportation enhancements that help create pedestrian- and bicycle-friendly environments and encourage a mixture of land uses. Funds may be used to support affordable or workforce housing by paying for specific transportation improvements required as a condition of project approval. As an example of a municipal sales tax increase, Measure A was passed by El Cerrito voters in February 2008 approving a ½ percent sales tax increase to perform local street improvements. Parking Benefit Districts A new potential funding stategy for areas with a high demand for parking are Parking Benefit Districts. The Districts are created by metering on-street parking (with pay stations or meters) and dedicating revenue, less city expenses for maintenance and enforcement, towards improvements in the immediate area. Regional and State Funding Sources Metropolitan Transportation Commission (MTC) Grants As the intermediary for Federal and State transportation grants, MTC offers funding through the Transportation for Livable Communities (TLC) program. Two important components of the TLC program are Capital Improvements Grants and the Housing Incentive Program. The Capital Improvement Grant Program can fund transportation infrastructure improvements that promote alternate modes of transportation, including walking, bicycling and transit ridership. Recently grants have ranged from $1.0 million to $2.0 million in size, and require a local match of 11.5 percent of project costs. Selection criteria prioritize projects with a connection to housing or mixed-use development. In the past, grant funds have been used to pay for sidewalk and streetscape improvements that were required as a condition of approval for new affordable housing developments. The Housing Incentive Program can provide funds to local governments which approve medium- and high-density housing near transit stops. Funds may be used for capital projects that support walking, bicycling and transit ridership. According to MTC, examples of typical projects include sidewalk and crosswalk improvements linking housing to nearby transit facilities, schools, or ---PAGE BREAK--- i m p l e m e n t a t i o n S E P T E M B E R 2 0 1 0 I 103 public parks. The amount of award depends on the density of housing per the schedule shown below: • 25 units/acre: $1,000 per bedroom • 40 units/acre: $1,500 per bedroom • 60 units/acre: $2,000 per bedroom MTC is in the process of revising its TLC program, having completed an evaluation in 2008. Changes to the programs described above may occur following this revision. California Department of Housing and Community Development (HCD) HCD manages a number of housing and community development activities that facilitate redevelopment and affordable housing in urban infill areas. For example, the HCD Transit-Oriented Development Program supports the development of higher-density housing within one-quarter mile of transit stations. Assistance includes subsidized development, and construction loans and grants for infrastructure necessary to support the development of eligible housing units. Various other HCD programs are more generally targeted toward the creation of affordable housing. These funding sources are typically applied for directly by non-profit or for-profit affordable housing developers, rather than public agencies. State Bonds State bond issuances may be used to fund infrastructure improvements throughout California. A two-thirds approval in the legislature is required to place a statewide bond measure on the ballot, which must then be approved by a simple majority of voters. For example, in 2006, voters approved Proposition 1C, leading to the issuance of $2.85 billion in bonds to support affordable housing and infrastructure improvements. In addition to funding existing housing programs, Proposition 1C earmarks $340 million to promote infill development, through infrastructure support. Eligible costs include: • Project-specific creation, development, or rehabilitation of parks or open space; • Water, sewer, utilities, or other infrastructure related to the infill development; • Roads, parking structures and transit linkages; • Support for alternative transit modes, including walking, bicycling and ride sharing; • Traffic mitigation; • Demolition and site preparation (including remediation); • Sidewalks and streetscapes; and • Storm drains, detention basins, culverts and similar drainage features. California voters also approved Proposition 1B in 2006. This measure allowed the State to float bonds to be used for transportation improvements around the State. There are currently 14 funding programs in Proposition ---PAGE BREAK--- v o l u m e I I c h a p t e r f o u r 104 I S A N P A B L O A V E N U E S P E C I F I C P L A N D R A F T 1B, including the Local Streets and Road Improvement, Congestion Relief and Traffic Safety Account of 2006. This program employs a formula to allocate approximately $1 billion to cities in California on a per capita basis for transportation improvements. California Safe Routes To School (SR2S) Program Established in 1999, the California Safe Routes to School (SR2S) program aims to increase the number of children who walk or bicycle to school by removing the barriers that currently prevent them from doing so. Those barriers include lacking, or unsafe infrastructure. SR2S also supports educational programs that promote walking and bicycling. SR2S came into effect with the passage of AB 1475. Following two extensions of the program, AB 57 extended the program indefinitely in 2007. Under SR2S, funds are apportioned to each Caltrans District on the basis of student enrollment. Local jurisdictions must apply to the local District for funding, and provide a 10 percent match. Eligible projects must be completed within four fiscal years after the funding is allocated, and must be within the vicinity of a school. Given the proximity of El Cerrito and Kennedy High schools, and Fairmont and Harding Elementary schools to the plan area, this grant source may be applicable. Caltrans reports that $48.5 million is available in the current funding cycle. Federal Funding Sources Federal Highway and Federal Transit Administrations The Federal Government offers a variety of competitive grant options through the Federal Highway and Federal Transit Administrations. In particular, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) program has offered grants designed to address a broad range of surface transportation improvements. The current SAFETEA-LU cycle began in August 2005 and will expire in September 2009. During this cycle, California received $23.4 billion in funds for a variety of highway, transit and safety items. Congress is currently considering an extension of SAFETEA-LU beyond September 2009. Two relevant SAFETEA-LU grants stand out as potential matches for proposed improvements in the San Pablo Avenue Specific Plan. SAFE ROUTES TO SCHOOL PROGRAM Similar to the State SR2S, the Federal Safe Routes to School (SRTS) Program provides funding for improvements related to sidewalks, traffic calming, speed reduction, pedestrian and bicycle access, and traffic diversion within a two-mile radius of a school. No local match is necessary. The current SAFETEA-LU cycle has provided $68 million to California for the SRTS program. ---PAGE BREAK--- i m p l e m e n t a t i o n S E P T E M B E R 2 0 1 0 I 105 TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION (TCSP) PROGRAM The TCSP program provides funding for a broad range of projects including those which implement transit-oriented development plans and traffic calming measures. Other program priorities include reducing the impacts of transportation on the environment, reducing the needs for costly future investments in infrastructure, and providing efficient access to jobs, services and centers of trade. With only $61.3 million allocated nationwide to this program in 2009, it represents a relatively small funding source. One of the goals of this program is to encourage private sector development, a criterion which is prioritized in grant distribution. This program requires 20 percent matching funds. In FY 2008, California jurisdictions received $3.9 million in funds. Department of Housing and Urban Development (HUD) HUD offers several grants that could provide funding for both the transportation and utility improvements. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Cities can use funds from CDBG monies to finance the construction of public facilities and improvements that will benefit economic development in areas with low- and moderate- income persons, or that aid in the prevention or elimination of blight. Eligible public improvements and facilities include water and sewer facilities, streets and neighborhood centers. The City of El Cerrito is represented by the County in the Contra Costa Consortium. It has historically received limited CDBG funding. The City of Richmond, with its own CDBG entitlement jurisdiction, also receives CDBG funding. SECTION 108 LOAN GUARANTEE HUD offers a loan guarantee program that local governments can use to finance the construction, reconstruction, or installation of public facilities, including street, sidewalk, and other site improvements, with CDBG monies as the source of repayment. Cities can leverage some of their annual CDBG allocation into a larger loan that can finance the proposed infrastructure improvements. In addition, once HUD approves the loan guarantee - and if the City can tie the improvements to new economic opportunities for low- and moderate-income persons - the City can apply for an Economic Development Initiative (EDI) grant or Brownfield Economic Development Initiative (BEDI) grant. These grants can be used to repay the Section 108 loan, freeing up the annual CDBG allocations for other purposes. ---PAGE BREAK--- v o l u m e I I c h a p t e r f o u r 106 I S A N P A B L O A V E N U E S P E C I F I C P L A N D R A F T AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (ARRA). Nationally, the bill provides more than $48 billion for transportation- related improvements. California will receive approximately $2.57 billion for highways, local streets and roads, freight and passenger rail, and port infrastructure projects, and $1.07 billion for transit projects. ARRA mandates that 67 percent of these funds may be spent anywhere in the state, and 30 percent is allocated to regional bodies for distribution to local projects, according to a population-based formula. MTC serves as the regional agency administering ARRA transportation grants in the Bay Area. The remaining three percent of funds are spent on “Transportation Enhancement” projects related to surface transportation, including pedestrian and bicycle infrastructure and safety programs, scenic and historic highway programs, landscaping and scenic beautification, historic preservation, and environmental mitigation. Different components of the ARRA have varying timelines for fund obligation. In the case of highway, street and road investment, states have 120 days after March 3, 2009 to commit 50 percent of their funding. (The 120-day deadline does not apply to the 30 percent of funds that states sub-allocate to local jurisdictions.) California has already met this goal, having obligated 50 percent of ARRA funds as of May 4, 2009. After one year all unobligated balances of apportioned funds to states, including sub-allocated funds, must be redistributed. Recipients of redistributed funds then have until September 30, 2010 to commit the dollars. To be eligible for funding, ARRA requires that a project be listed on a Federal Transportation Program (FTIP). Therefore, the Cities of El Cerrito and Richmond would have to work with MTC to include the improvements proposed under the San Pablo Avenue Specific Plan in the region’s FTIP. Given the relatively short-term nature of ARRA funding, and the need to add the proposed projects to the FTIP, securing ARRA dollars may not be feasible. ---PAGE BREAK--- i m p l e m e n t a t i o n S E P T E M B E R 2 0 1 0 I 107 Fees and Exactions In addition to the local funding sources identified at the beginning of this report, the City could potentially charge developer impact fees to finance proposed Station Area infrastructure improvements. Development Impact Fees Impact fees may be charged on new development to mitigate any impact on environmental conditions, including circulation and transportation issues. As such, an impact fee on new development in the San Pablo Avenue Specific Plan plan area could be established to finance improvements proposed in the Plan. Any impact fees must be set according to each development’s respective share of the impact and associated cost to mitigate it. This calculation requires a “nexus study,” a legal requirement under California case law and per the Mitigation Fee Act. California jurisdictions are required to show through a nexus study that the proposed development is in fact creating an impact and the fee is proportional to the impact. As a limitation to using impact fees as a financing strategy, the fees do not provide up-front capital for improvements, and are reliant on new development activity. Therefore, the Cities would have to use other sources, such as RDA funds, to finance construction, and wait for reimbursement as development occurs over time. Currently the Cities of Richmond and El Cerrito charge a programmatic countywide transportation impact fee and case by case impct fees on new development. Developer Exactions The City may impose various requirements, known as exactions, as a condition of new development. Exactions include land dedication for public purposes and development of necessary public infrastructure. As with impact fees, the cost of exactions represents a direct cost to the developer. Therefore, these should be carefully considered during the entitlement process, to assure that the exactions still allow for a financially feasible project. Special Districts California allows the formation of Special Districts for purposes of developing and maintaining public facilities and, in certain instances, providing public services within a defined area. Special Districts require property-owner support but do not necessarily require commitments from the City’s General Fund or other citywide revenue sources. Special Assessment District (AD) Special Assessment Districts are tools used throughout the State to fund capital improvements, cover maintenance costs, and provide services, which offer special benefits ---PAGE BREAK--- v o l u m e I I c h a p t e r f o u r 108 I S A N P A B L O A V E N U E S P E C I F I C P L A N D R A F T within a specified area. The formation of an AD requires a majority vote from property owners within the assessment area, with their vote weighted based on proportionate shares of the total annual assessment. All property owners within the district pay an annual assessment above their regular property taxes to pay for special benefits. Gaining majority owner approval in a developed area with multiple parcels like the San Pablo Avenue corridor can prove challenging, because certain owners have no plans to redevelop their properties and may see little financial incentive to support a new assessment. Mello-Roos Community Facilities District Mello-Roos districts are similar to special assessment districts except they must be approved by a two-thirds approval of noticed voters (not proportionate to their assessment). Mello-Roos districts are not special assessments, but rather are a special tax used to pay for public facilities and/or services. Within Mello- Roos Districts the special tax cannot be directly linked to the value of property, but rather is calculated related to the benefit received by the property owner using formulas tied to property characteristics such as road frontage, lot size, and built square footage. A Mello-Roos District is often better than a Special Assessment District in matching taxpayer costs to taxpayer benefits. Similar to an AD, the formation of a Mello-Roos District is difficult in a built-out area where property owners may have disparate interests. Consequently, they are more commonly used as financing tools in greenfield development sites or in other areas with limited owners and voters. Property-Based Business Improvement District (PBID) PBIDs allow commercial property owners to tax themselves for specific activities clearly detailed in their PBID Service Plans. PBIDs are self-assessed and self-governed by the affected property owners. A PBID may be used to enhance city services but may not be used to replace services already provided by the City. Although they can support capital improvements, PBIDs often become a means to improve business conditions by acting as a collective marketing and maintenance district. A PBID can earmark monies for capital improvements consistent with the district’s adopted management plan.